Short Straddles
February 21, 2023
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Short Straddles

The short straddle has a bad rap given it is a strategy with unlimited risk on both sides of the strategy. If you sell a short straddle on a stock, ETF or index and the underlying moves substantially higher or lower, you can see substantial losses. However, it is a strategy that is commonly misunderstood, and in this post we...

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1 month ago
Improved Market Liquidity and How to Identify These Opportunities
November 10, 2022
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Improved Market Liquidity and How to Identify These Opportunities

Liquidity is a very important factor when trading options as it determines how easy it is to be filled at a competitive price when entering the trade, as well as how easy it is to exit the trade. Volume and open interest tend to be the first things retail traders look at when considering liquidity, but these do not give the...

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5 months ago
The Wheel Strategy
May 09, 2022
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The Wheel Strategy

As an equity investor, we are always seeking investment opportunities to maximize capital appreciation and income. Finding a balance between the two can be challenging and many times have significant tradeoffs. However, you can potentially add income to any equity position with options using two strategies to add an income...

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11 months ago
A Counterintuitive Approach to Expiration Dates & Strike Prices
March 07, 2022
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A Counterintuitive Approach to Expiration Dates & Strike Prices

The process to select expiration dates and strike prices for an options strategy is fairly simple, but sometimes counterintuitive. Selecting the optimal expiration dates and strike prices depends on a few factors, however there is an overarching method to selecting them for any strategy. In this post we will analyze expiration...

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1 year ago
An Options Strategist’s Guide to Buying Portfolio Protection
March 02, 2022
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An Options Strategist’s Guide to Buying Portfolio Protection

As the disconnect continues to widen between fundamentals, economics and where equity market valuations, many investors have raised the question, when is it time to hedge the growing downside risks? To help investors answer this question, we explore the mechanics and best practices for seeking downside protection for a...

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1 year ago
Collar Strategy
December 06, 2021
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Collar Strategy

The Collar strategy is a strategy that allows investors to protect from large downside losses on a stock. This strategy requires the investor to have a minimum of 100 shares of the stock. The Collar strategy can also be considered as a combination of two strategies – writing a Covered Call and buying a Put option. Collars...

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1 year ago
Multi-Leg Options Can Reduce Risk & Improve Executions
November 03, 2021
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Multi-Leg Options Can Reduce Risk & Improve Executions

Trading options involves selecting from a world of options, which may seem overwhelming at first. With 4 core strategies, buying calls, selling calls, buying puts and selling puts, it’s already a step up in complexity from stock investing and trading. Despite the flexibility that these strategies provide, each has their...

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1 year ago
Covered Combination
September 28, 2021
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Covered Combination

Introduction A covered combination is an often-overlooked options strategy by many investors who may utilize each half of the strategy separately, but never considered combining them. This is a strategy where an investor owns 100 shares of a stock and sells a covered call and a cash secured put at the same time. The motivation...

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1 year ago
Growing an Options Account Sustainably
September 07, 2021
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Growing an Options Account Sustainably

Investors that are starting to trade options tend to have smaller trading accounts. In this post we will discuss the challenges with growing a smaller options account and the strategies to do so sustainably. While smaller accounts are more challenging to grow, there are best practices and strategies that investors can use for...

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2 years ago
High Yield Income Opportunities using OptionsPlay
August 16, 2021
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High Yield Income Opportunities using OptionsPlay

Option income strategies can be used to increase the yield of an equity portfolio by generating an income stream and by purchasing stocks at a potential discount. This post will cover which options strategies to use based on your primary goal, how to implement these strategies and how you can instantly scan the entire market...

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2 years ago
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